The cabinet adopted a draft law on taxing controlled foreign corporations, the government's press office said in a statement following the weekly cabinet sitting.

The bill forces Polish companies owning units in countries with lower tax burden, called controlled foreign corporations, to include incomes of those units in their taxable income base, the statement reads.

A controlled foreign corporation is defined as being 25% owned in terms of capital, voting rights or profit share; with minimum 50% of revenues being financial revenues; located in a country with a CIT rate 25% below Poland's. That will also pertain to any country identified as a tax haven by the Finance Ministry.

The new law will not pertain to units located in the EU or in the European Economic Area if a given company is actually running business operations there.

The new law is aimed at introducing a level playing field for all taxpayers operating in Poland and at supporting honest competition, the statement reads.